Disney Q3 2024: Streaming finally begins its profit journey
Streaming fell back into the red again, although with further price hikes on the way—along with "modest" Disney+ subscriber growth—next quarter should see the beginning of a profitable trajectory
In the UK, Disney+ continues to grow engagement—if not necessarily subscriptions—however, we still await a boost from local scripted originals
While the performance of Disney's core segments appears to be stabilising, 2024 remains a year of unfinished projects
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Disney Q2 2024: Streaming breaks even
8 May 2024There were no flashy announcements this quarter as Disney highlighted its streaming business—the Entertainment component reaching profitability—with its turnaround offsetting the decline in the embattled Linear segment
In a reasonably stagnant UK SVOD market, Disney+ continues to grow household reach and engagement across almost all age demographics. One driver is its top content, which is more likely to be completed and rewatched than competitors'
Disney is searching for new technology leadership. Its current structure is segmented and depowered, requiring a single leader responsible for overarching technology direction to best combat streaming costs and reach platform scale efficiency
Disney Q1 2024: Glossy announcements as Disney+ churns
9 February 2024Disney's bottom line results were flattered by a year-long cost cutting drive: the decline in linear entertainment revenue is accelerating and direct-to-consumer subscriber growth has temporarily stalled.
A new sports JV with Warner Bros. Discovery and Fox, along with other announcements are designed to grab attention in midst of turbulent shareholder rebellion. Disney also—at last—unveiled a new games initiative with a $1.5 billion equity stake in Epic Games and a major immersive universe to attract younger audiences.
Disney's approach to the licensing of content to third parties is nuanced and so will be its effect on the perception of Disney+'s exclusivity.
Disney Q4 2023 results: Freeing up cash
9 November 2023CEO Bob Iger has announced that Disney is now in a "building" phase—indicating that the strategic turnaround is complete—however, upcoming breakeven of streaming products owes much to cuts on programming spend
With the rest of Hulu soon to be acquired, Disney looks as if it is pulling out of India—this will make the company's presence outside of the US even more peripheral
In the UK, Disney+'s advertising-supported tier is now live, however, there are forces at play that limit Disney's ability to execute its tiering strategy as effectively as its biggest streaming competitor
Disney Q3 2023 results: Rougher weather ahead
10 August 2023Thanks to Parks (+11% YoY, $2.43 billion), Disney's Q3 operating income remained flat, balancing the decline from Media and Entertainment (-18% YoY, $1.13 billion) as DTC only lost $512 million and linear dropped by 23% ($1.89 billion). No new major growth initiatives were announced but Disney will look to stem DTC losses through Disney+ price rises and a password sharing crackdown.
Major segment resets are looming as Disney looks for new partners for ESPN and possibly buyers for its legacy TV business, ABC.
A difficult remainder of the year will be prolonged if the Hollywood talent unions strike into the autumn and beyond, while Bob Iger stays on as CEO through 2026.
Disney Q2 2024: Streaming breaks even
8 May 2024There were no flashy announcements this quarter as Disney highlighted its streaming business—the Entertainment component reaching profitability—with its turnaround offsetting the decline in the embattled Linear segment
In a reasonably stagnant UK SVOD market, Disney+ continues to grow household reach and engagement across almost all age demographics. One driver is its top content, which is more likely to be completed and rewatched than competitors'
Disney is searching for new technology leadership. Its current structure is segmented and depowered, requiring a single leader responsible for overarching technology direction to best combat streaming costs and reach platform scale efficiency
Disney Q1 2024: Glossy announcements as Disney+ churns
9 February 2024Disney's bottom line results were flattered by a year-long cost cutting drive: the decline in linear entertainment revenue is accelerating and direct-to-consumer subscriber growth has temporarily stalled.
A new sports JV with Warner Bros. Discovery and Fox, along with other announcements are designed to grab attention in midst of turbulent shareholder rebellion. Disney also—at last—unveiled a new games initiative with a $1.5 billion equity stake in Epic Games and a major immersive universe to attract younger audiences.
Disney's approach to the licensing of content to third parties is nuanced and so will be its effect on the perception of Disney+'s exclusivity.
Disney Q4 2023 results: Freeing up cash
9 November 2023CEO Bob Iger has announced that Disney is now in a "building" phase—indicating that the strategic turnaround is complete—however, upcoming breakeven of streaming products owes much to cuts on programming spend
With the rest of Hulu soon to be acquired, Disney looks as if it is pulling out of India—this will make the company's presence outside of the US even more peripheral
In the UK, Disney+'s advertising-supported tier is now live, however, there are forces at play that limit Disney's ability to execute its tiering strategy as effectively as its biggest streaming competitor
Disney Q3 2023 results: Rougher weather ahead
10 August 2023Thanks to Parks (+11% YoY, $2.43 billion), Disney's Q3 operating income remained flat, balancing the decline from Media and Entertainment (-18% YoY, $1.13 billion) as DTC only lost $512 million and linear dropped by 23% ($1.89 billion). No new major growth initiatives were announced but Disney will look to stem DTC losses through Disney+ price rises and a password sharing crackdown.
Major segment resets are looming as Disney looks for new partners for ESPN and possibly buyers for its legacy TV business, ABC.
A difficult remainder of the year will be prolonged if the Hollywood talent unions strike into the autumn and beyond, while Bob Iger stays on as CEO through 2026.